Car Refinance

Transferring your car finance to Lloyds Bank could help you lower your monthly repayments or spread the cost of a final lump sum payment.

What is car refinancing?

Car refinancing is the process of taking out a new finance agreement to pay off the outstanding balance on an existing car finance loan, usually with a new lender.


To find out more about what car refinance is and how to switch to us, watch our short video.

Watch our video to understand more about car refinance.
  • If you currently have a car finance agreement with another provider, it’s worth exploring if you could benefit from refinancing with us.

    Whether you’re looking to reduce your monthly payments or spread the cost of a final lump sum to own your car, we could help.

    Car refinancing is the process of taking out a new finance agreement to  pay off the outstanding balance on an existing car finance agreement, usually with a new lender.

    If you’re a Lloyds Bank customer, you could switch your current Personal  Contract Purchase or Hire Purchase car finance from elsewhere to us.

    You can then choose to switch to either Personal Contract Purchase (PCP)  or Hire Purchase,(HP) with us.

    With PCP, you could get lower monthly repayments than with HP.

    You could also own the car by paying a final lump sum,  but with HP, you own the car at the end of the agreement – with no lump sum needed.

    With Personal Contract Purchase, we offer terms  from one to four years. 

    With Hire Purchase, terms are usually one to five years.

    The final difference is that PCP comes with yearly mileage limits, therefore if you do not keep you car at the end of your PCP agreement and have exceeded your yearly mileage limit then charges will apply. 

    With HP no yearly mileage limits apply. 

    Refinancing should be straightforward and funds are sent directly to the finance provider.

    Get your quote by logging on to Internet Banking and telling us about your  car and your current finance.

    Ask your provider for a settlement quote so that you can use accurate  information.

    You’ll be able to see if you’re approved in a few minutes.

    If you decide to go ahead, email your settlement figure, so we can  switch you to us.

    Here’s a summary of the key points

    You can switch your current PCP or HP car finance from another  provider to Lloyds Bank.

    Transferring your car finance could help you lower your monthly  repayments.

    You could get a better deal or help paying a final lump sum by switching  your car finance to Lloyds Bank.

    Start your switch today.

    Visit lloydsbank.com/car-refinance

    We’re by your side.

Why refinance your car with Lloyds Bank?

Lloyds Bank customers can switch their current PCP or HP car finance from elsewhere to us by getting an online quote, that won’t affect your credit score. Customers can then choose to switch to either Flex Car Finance (PCP) or Fixed Car Finance  (HP) with us.

Flex Car Finance (PCP)

What are the benefits?

  • 5.9% APR representative when you borrow between £7,000 to £25,000.
  • Lower monthly repayments.
  • 1-4 year terms available.
  • Own the car by paying a final lump sum, or return it.
  • No early repayment charges.
  • Yearly mileage limitsIf you have exceeded the agreed mileage allowance on return of the car, you will need to pay an excess mileage charge. You can avoid this by agreeing a realistic mileage at the outset.
  • Funds are sent directly to the finance provider.

Other terms, borrowing amounts and rates are available.

Fixed Car Finance (HP)

What are the benefits?

  • 4.8% APR representative when you borrow between £7,000 to £25,000.
  • Fixed monthly repayments.
  • 1-5 year terms available.
  • Own the car when the agreement ends..
  • No early repayment charges or final lump sum.
  • Funds are sent directly to the finance provider.

 

Other terms, borrowing amounts and rates are available.

How it works

  1. Get your quote: Log on to Internet Banking and tell us about your car and current finance. Ask your provider for a settlement quote so that you can use accurate information.
  2. See your decision: Find out if you're approved in a few minutes.
  3. Make your switch: Email your settlement figure, so we can switch you to us.

Ready to apply?

To make an application, you must have:

  • Existing car finance, not with Lloyds Bank, the Halifax or Bank of Scotland.
  • An active Lloyds Bank current account (3 months minimum).

And be:

  • 18+ and a UK resident.
  • Registered for Internet Banking.

You will also need to know how much is outstanding on your existing car finance with your current lender.

Lending is subject to status and additional affordability checks.

Start your switch

Representative example

You could borrow £13,000 over 48 months with 48 monthly repayments of £297.60. Total amount repayable will be £14,284.94 (including £10.00 purchase fee). Representative 4.8% APR, annual interest rate (fixed) 4.67%.

The representative APR applies to loans of £7,000- £25,000 over 1 to 5 years. Other terms and lending amounts are available at different rates.

This example shows you the rate you could get as a current account customer taking out our HP product. For a personalised quote based on your own circumstances, you’ll need to log on to Internet Banking.  

Want to know more?

You’ll find more details about transferring your car finance in our FAQ section.

Go to FAQs

Need help with your car refinance application?

Call: 0333 202 7969. Lines are open from 9am – 5pm Monday – Friday, 9am – 1pm on Saturdays and closed on Sundays.

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).